Maharashtra takes pole position for F1

State road corp to award consultancy contract to UK’s Capita-Populous consortium by July-end; Malad in North Mumbai one of the probable sites.

The idea of bringing Formula One (F1) automobile races to Maharashtra is taking shape. Maharashtra State Road Development Corporation (MSRDC) is to soon give a consultancy contract to a UK-based consortium of Capita Symond and Populous for preparing a bid document.

F1 is the highest class of single-seater auto racing sanctioned by the Fédération Internationale de l'Automobile. The F1 season consists of a series of races, known as Grands Prix, held on purpose-built circuits and public roads. The results of each race are combined to determine two annual world championships.

The Maharashtra project would need about 500 acres of land and the probable sites would be Malad in North Mumbai, Panvel in Raigad district and areas along the Mumbai-Pune expressway.

Bipin Shrimali, vice chairman and managing director of MSRDC, told Business Standard: “During the bidding process, the Capita Symond and Populous consortium was ranked first and another consortium of Louis Berger and Bob Barnad came next. MSRDC will award the consultancy contract by the end of July. The consortium will take at least one year to complete the inspection report and necessary documents, including the bid document.”

He said the project entailed investment of Rs 1,500 crore and would be completed over three years since the award of a contract to a developer. "However, the actual project cost will be fixed only after the consultant submits its report," he added.

Shrimali said the consultant would identify land other than Panvel and Malad, depending on availability at one stretch. The project would be developed on a build-operate-transfer basis. He said Capital Symond and Populous were engaged with similar mega sports projects in Europe, the US and in the Gulf region.

Worli-Haji Ali
In an unrelated development, MSRDC has asked Reliance Sea Link One Pvt Ltd (RSLOP), an arm of Reliance Infrastructure, to abide by the concession agreement and make a payment of Rs 1,634 crore to take charge of work on the Worli-Bandra sea link project as soon as the financial closure is done on July 3. Subsequently, three months from the financial closure, MSRDC would give away the first installment of Rs 406 crore of the total Rs 1,392 crore of viability gap funding. RSLOP, which bagged the entire Worli-Haji Ali sea link project, would have to fulfil these requirements in line with the concession agreement of last June.

Shrimali made it clear that the RSLOP would have to start the development of Worli-Haji Ali once it pays the Rs 1,634 crore. "By the agreement, RSLOP would have to complete the Worli-Haji Ali sea link project in 42 months,” he said. The project entails investment of Rs 5,000 crore, including the payment of Rs 1,634 crore to MSRDC.

“On MSRDC’s part, the toll notification and state support agreement will be in place soon,” said Shrimali. MSRDC would give the viability gap funding in installments. “MSRDC has enough liquidity and RSLOP should not worry about it,” he added. The latter had, in a communication last week, said MSRDC had yet to confirm the availability of the viability gap funding and making available space for a casting yard at the site, execution of state support agreement and issuance of toll notification.